Naspers unit Prosus to sell Tencent stake worth R218-billion - TechCentral

Naspers unit Prosus to sell Tencent stake worth R218-billion

Naspers spin-off, technology investment company Prosus, plans to sell a 2% stake in China’s Tencent, worth about R218-billion at current prices, in an accelerated offering to institutional investors.

Prosus, majority owned by Naspers, said the sale would lower its stake in Tencent to 28.9% from 30.9%. The move underlines the size of Prosus’s Tencent stake, which it said it had committed not reduce further in the next three years.

“The proceeds of the sale will increase our financial flexibility, enabling us to invest in the significant growth potential we see across the group, as well as in our own stock,” CEO Bob van Dijk said in a statement.

Prosus shares fell 4% to €94.52 shortly after the news.

The company said it had informed Tencent of its intention before Wednesday’s announcement.

In addition to its Tencent stake, Prosus owns or invests in online food delivery platforms, classified marketplaces and digital payments businesses.  — Reported by Toby Sterling, (c) 2021 Reuters

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